Hilton Foods has warned its profits will remain under pressure in 2026 as the protein processor continued to battle against rising beef and fish prices.
The beleaguered Tesco supplier said in a trading update for the 52 weeks to 28 December that full-year adjusted pre-tax profits would be in line with the £72m-£75m range.
That figure had been lowered last year as Hilton disappointed investors with profits warnings on the back of volatile trading conditions, which saw CEO Steve Murrells leave his position in November.
This morning, Hilton issued ongoing caution for 2026 as restrictions to smoked salmon exports from Greece to the US remained in place for at least the first half of the year and inflationary pressures in beef and white fish to continue.
“While we are actively working on opportunities for business transformation and profit improvement against this backdrop, we remain cautious on the outlook for the year,” the trading update added.
Hilton also now expected 2026 adjusted profit before tax to be within the range of £60m to £65m.
Shares in Hilton sank 6.7% to 480p as markets in London opened this morning. The stock was one of the worst performers in the food & drink industry in 2025 as it lost more than 40% of its value.
Hilton is in the middle of a strategic review to identify opportunities for efficiencies and investment. It will share its conclusions alongside the 2025 full-year results.
The group said it experienced “good” Christmas trading across red meat and salmon, as expected.
And Foppen continued to supply smoked salmon to the US market from the Netherlands facility followings the restrictions imposed on Greece. However, US stock write-offs are now expected to be significantly higher than previously indicated.
“We’re pleased that Christmas trading was in line with our expectations, which reflects the continued strength of our partnerships with customers,” said executive chairman Mark Allen, who took over the running of the company following Murrells departure.
“However, the group continues to be impacted by the situation at Foppen and sustained elevated inflation levels. Hence, we are taking a cautious approach to guidance for 2026.
“Supported by the board, our strategic review is expected to reaffirm the focus on our core meat capabilities and highlight opportunities to drive sustainable long-term value.”
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